The Sac Bee reports that there is growing concern about drought conditions in Northern California. Why does this matter for real estate? We do need water to keep California's agricultural and urban interests going. Don't forget your Econ 101, if water supply declines then prices will rise and this pricing signal of scarcity will lead consumers to change their behavior so that they consume less. The problem with this optimistic logic is that water prices are not set by a market. Water prices are set by California's by our Public Utility Commission. If prices remain too low, then no consumers has an incentive to change his/her behavior. I have been amazed at how many swimming pools and how much green grass there is in arid Southern California. 1/2 cent a gallon is not the right water incentive. To quote John Lennon, given prices a chance. Home owners must think of other ways to make their outdoor property look good. Don't forget the cactus!
Search
Contact
For blog inquiries: [email protected]
For media inquiries: [email protected]
For general inquiries: [email protected]
For media inquiries: [email protected]
For general inquiries: [email protected]
Recent Posts
- GlobeSt.com: "Flexible Living Company Secures $100M to Expand Network"
- REIT: "Inflation, Interest Rates, and All That Jazz"
- GlobeSt.com: "Remote Workers Choose New Homes for Many Reasons"
- Bisnow: "Corruption Case Sweeps Up Major West Coast CRE Players"
- Los Angeles Times: "The housing market is red hot. How long can it last?"
- KCRW: "How a city-funded homeless housing project became a sink hole for public money"
- dot.LA: "HomeLister Scores $4.5M to Cut Realtor Costs from Home Sales"
- LeadingAge CA Engage Magazine: "Beyond IWISH – Applying A Systems Change Approach To Integrating Care At Home"
- UCLA News Room: "UCLA model ID’s areas that should have priority for vaccine, other COVID-19 help"
- CBS Los Angeles: "Study Shows Low-Income LA Neighborhoods Are Most At Risk Of COVID-19"
Recent Comments
- Imgcan6 on Should You Buy Land in Merced, California?
- Imgcan6 on The LA Times Has a Nice Write Up About my New "Green Homes" Price Premium Paper
- Imgcan6 on Eminent Domain and the Government Seizing Mortgages: The Game of Chicken Continues
- Imgcan6 on Important New Federal Reserve Bank of NY Study Documenting Recent Housing Trends
- Imgcan6 on Discrimination in Housing Markets
- Imgcan6 on Hotels in Singapore
- Imgcan6 on Google is Investing in Venice Beach Real Estate
- Imgcan6 on Budapest Real Estate
- Imgcan6 on Return of the Jedi?
- Imgcan6 on The Empire Strikes Back
« The NY Post Surveys the 2012 NYC Real Estate Market | Main | Using Parking Lot Resale Prices to Value Downtown Land »
01/11/2012
Drought in California?
Comments
You can follow this conversation by subscribing to the comment feed for this post.
The comments to this entry are closed.
About UCLA Ziman Center for Real Estate
- UCLA Ziman Center is a multidisciplinary research center of UCLA Anderson School of Management and UCLA School of Law. We seek to advance thought leadership in the field of real estate by generating influential research, educating the next generation of leaders and providing meaningful forums for industry professionals and policy makers.
Read More About Us
The problem with this optimistic logic is that water prices are not set by a market.idzmj0820
http://www.guildwars2gold.net/
Posted by: Zhang Guang | 08/20/2012 at 02:50 AM
Nice info...
http://www.arginuring.com
http://www.jasaarsitek.arginuring.com
http://www.rumahminimalis.web.id
http://www.arginuring.wordpress.com
Posted by: ArsitekBandung | 12/19/2012 at 10:50 PM